Debt reality check - MoneySense

Debt reality check

Average household debt ratios hit 152% in Q1 despite efforts by Canadians to limit borrowing.


•Growth in household debt slowed to 0.9% in the first quarter, driven by a slower rate of borrowing in consumer credit and mortgage loans, Statistics Canada said Friday. That was offset however by falling disposable incomes due to increases in personal income taxes and other social contributions.  As a result, the ratio of credit market debt to personal disposable income increased to 152% in Q1 from 150.5% in the previous quarter. Read more about the state of Canadians’ balance sheets. Here’s snapshot of the change in household net worth:

Chart 2: Change in household net worth

•Should couples who live together nickle and dime eachother, agree to split everything 50/50 no matter what or treat their partner once and a while? There’s no right answer, according to  The key is to make sure both partners share the same philosophy when it comes to money.